As analysts from the national rating agency AmRating believe, restrictive measures introduced due to the coronavirus pandemic have significantly affected economic activity of the country and performance of insurance companies in particular. The largest drop in premiums was observed in travel insurance (-46.4% vs. +23.4% a year ago). GWP also took a huge drop in cargo (-37.4%), GTPL (-40%) and property insurance (decrease by almost 39% due to a decrease of activity in the real estate market). Restrictions on movement and on the use of vehicles has led to a GWP decrease in MTPL and Motor Hull as well, nevertheless, motor insurance continued to dominate the Armenian market portfolio, accounting for almost 47% of the total GWP.
On the paid claims side, a significant decline was demonstrated by cargo insurance (down by almost 94%) and travel insurance (-45.4%). Annual drop in paid claims was recorded in almost all major segments, with the exception of health insurance, where the claims paid remained at about the same level as in 1H2019, with just a slight increase. Traditionally, the largest share of paid claims belonged to MTPL, followed by health insurance.
Corporate insurance still prevails in the premiums of Armenian insurers, accounting for 56.2% (1H2019: 55.9%), while the retail one accounts for 43.8% (1H2019: 44.1%). However, according to the Financial Rating of insurance companies of Armenia prepared by ArmInfo, retail insurance in total GWP decreased by 8.5%, and the corporate - by 7.4%. In paid claims, retail insurance is dominating (68.2% of the market paid claims), while claims paid to corporate clients reached 31.8%.
For the first six months of 2020, ROSGOSTRAKH Armenia was the leader in terms of GWP (AMD 7.5 billion) out of a total of six Armenian insurers, followed by INGO Armenia on the second place (the leader in 1H2019) and NAIRI Insurance on the third place (same place as in 1H2019).
1 EUR = 540.44 Dram - AMD (June 30th, 2020)